Strategies for Structural Transformation in South Asian Countries
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Growth in South Asia has not resulted in structural transforma- tion and increase of productive capacities. This paper presents a methodology to identify the opportunities for countries in South Asia to build their productive capacities and promote structural trans- formation through the emulation of the productive structure of more developed countries. The paper also discusses country-specific stra- tegies that combine laissez-faire and strategic diversification ap- proaches to facilitate the emergence of new economic activities that are more likely to increase the productive capacities in the country. In addition to its relevance to the formulation of inclusive develop- ment policies in South Asia, this paper contributes to the industrial policy literature by exploring the use of empirical data to verify the need for selective policies.
Abstract
Growth in South Asia has not resulted in structural transforma- tion and increase of productive capacities. This paper presents a methodology to identify the opportunities for countries in South Asia to build their productive capacities and promote structural trans- formation through the emulation of the productive structure of more developed countries. The paper also discusses country-specific stra- tegies that combine laissez-faire and strategic diversification ap- proaches to facilitate the emergence of new economic activities that are more likely to increase the productive capacities in the country. In addition to its relevance to the formulation of inclusive develop- ment policies in South Asia, this paper contributes to the industrial policy literature by exploring the use of empirical data to verify the need for selective policies.
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